Denver – Bustling Economy Eases Concerns

Denver employment will rise at one of the fastest paces in the nation this year, supporting housing demand as a wave of new inventory comes online. A highly educated workforce is fostering expansion in several of the metro’s high-tech industries, including energy, financial services, bioscience and healthcare. In addition, the highly anticipated redevelopment of Union Station in downtown Denver will be completed midyear, creating a multi-modal transportation hub that connects train, light rail, bus and other transportation options in one central location.

This project has been a catalyst for development throughout the area as nearly 4,000 apartments are under construction in the CBD and several projects have been established in the path of rail lines. Though a surplus of inventory will threaten to soften select submarkets this year, strong job growth and household formation should mitigate upswings in vacancy.

Investment activity will remain brisk through 2014 as a bright economic outlook and an increase in household formation instill confidence in investors. However, a limited number of properties available for sale could hinder transaction velocity in the coming months. Light rail expansion is guiding many investors to purchase assets along the planned routes and the area along the I-225 rail line has also been especially popular. The anticipated opening of this rail line, as well as job cultivation and development near the Fitzsimons Life Science District are spurring interest in area properties. Pre-1980s assets in need of repositioning are garnering strong investor interest and range in quality, amenities and size. The recently opened West Rail Line will continue to draw significant attention as investors who have stabilized assets seek to cash out and search for additional opportunities.

For full article, click here: Marcus & Millichap 2014 predictions 2

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